Correlation Between Borusan Yatirim and Cemtas Celik
Can any of the company-specific risk be diversified away by investing in both Borusan Yatirim and Cemtas Celik at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Borusan Yatirim and Cemtas Celik into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Borusan Yatirim ve and Cemtas Celik Makina, you can compare the effects of market volatilities on Borusan Yatirim and Cemtas Celik and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Borusan Yatirim with a short position of Cemtas Celik. Check out your portfolio center. Please also check ongoing floating volatility patterns of Borusan Yatirim and Cemtas Celik.
Diversification Opportunities for Borusan Yatirim and Cemtas Celik
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Borusan and Cemtas is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Borusan Yatirim ve and Cemtas Celik Makina in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cemtas Celik Makina and Borusan Yatirim is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Borusan Yatirim ve are associated (or correlated) with Cemtas Celik. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cemtas Celik Makina has no effect on the direction of Borusan Yatirim i.e., Borusan Yatirim and Cemtas Celik go up and down completely randomly.
Pair Corralation between Borusan Yatirim and Cemtas Celik
Assuming the 90 days trading horizon Borusan Yatirim ve is expected to generate 1.32 times more return on investment than Cemtas Celik. However, Borusan Yatirim is 1.32 times more volatile than Cemtas Celik Makina. It trades about 0.0 of its potential returns per unit of risk. Cemtas Celik Makina is currently generating about -0.07 per unit of risk. If you would invest 234,800 in Borusan Yatirim ve on September 3, 2024 and sell it today you would lose (9,700) from holding Borusan Yatirim ve or give up 4.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Borusan Yatirim ve vs. Cemtas Celik Makina
Performance |
| Timeline |
| Borusan Yatirim ve |
| Cemtas Celik Makina |
Borusan Yatirim and Cemtas Celik Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Borusan Yatirim and Cemtas Celik
The main advantage of trading using opposite Borusan Yatirim and Cemtas Celik positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Borusan Yatirim position performs unexpectedly, Cemtas Celik can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cemtas Celik will offset losses from the drop in Cemtas Celik's long position.| Borusan Yatirim vs. Politeknik Metal Sanayi | Borusan Yatirim vs. Gentas Genel Metal | Borusan Yatirim vs. Turkiye Kalkinma Bankasi | Borusan Yatirim vs. MEGA METAL |
| Cemtas Celik vs. Qnb Finansbank AS | Cemtas Celik vs. Turkiye Kalkinma Bankasi | Cemtas Celik vs. Kocaer Celik Sanayi | Cemtas Celik vs. Cimentas Izmir Cimento |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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